‘In the real world, you get the sack, not a bonus, when you betray your customers and besmirch your company’s good name,’ said Lord Oakeshott, a leading LibDem peer. ‘But it is all too common to sweep a boss’s bad behaviour under the carpet when they leave under a cloud. Lloyds is right to make a stand.’

Four unnamed Lloyds directors are having their bonuses ‘adjusted’ by 25 per cent.

They are understood to be Helen Weir, who will lose around £218,000, Archie Kane, who will lose around £191,750, Truett Tate, who will lose £260,000, and Tim Tookey, who will lose around £235,500. All four have left the bank or are about to do so.